At the end of 2024, Australia’s luxury housing market was forecasted to reach or exceed $2 million through 2025, with smaller capital cities emerging as luxury housing hotspots.

Propertyology’s 2025 Property Outlook Report, where luxury houses refer to housing priced in the top five per cent of the market in each region, is suggesting some dramatic realignment.

Sydney still has a major lead despite showing the slowest growth, sitting above $4 million across its top five per cent. The Gold Coast has taken over Melbourne as the second most expensive premium property market. The Sunshine Coast is projected to join Sydney and the Gold Coast in the top three.

The Brisbane luxury market has also increased, along with Perth. Adelaide is showing the strongest momentum of all capitals and may soon nudge Canberra out to eighth place.

Overall, the luxury market looks to be trending towards a new baseline, with all major cities except Darwin expected to reach or exceed the $2 million average across that top five per cent of their market.

It seems as though luxury real estate in the US is in for a change in 2025 too.

There, Coldwell Banker’s 2025 Trend Report suggests that it is poised for big changes, with more balanced market conditions, growing multi-generational demand, and increasing female leadership emerging as key trends.

The report even predicts that luxury home prices will continue to outperform the traditional market.

It finds Generation X, specifically the 44- to 59- year-olds, is emerging as a dominant force in luxury real estate and is the demographic that’s actively driving demand for multi-generational living spaces.

Proximity to New York City relates to the increase in prices, especially in the luxury marketplace.

The report identifies a significant shift in gender where women under 35 now represent 54 per cent of luxury property owners in their age group, though men still dominate luxury homeownership in older age groups.